Altron - Edison Group

Overview
Price performance
Financials
Research
Thematics

Altron is a South African provider of platforms and IT services. The company operates via three divisions: IT Services, Platforms and Altron Arrow. In H124, 89% of revenue was generated in South Africa and annuity revenue made up 60% of total revenue.

Altron operates in the IT services, identity security, telematics, fintech and healthcare software markets, predominantly in South Africa. Growth rates in these key technology markets are well ahead of GDP, supporting organic growth. The company would also consider supplementing this with acquisitions in the telematics, security and fintech markets.

Latest Insights

TMT |
Update

05.06.24

Altron — Transformation plan drives margin growth

TMT |
Initiation

04.04.24

Altron — Rising star

Sector

TMT

Equity Analyst

Katherine Thompson

Katherine Thompson

Director

Key Management

Carel Snyman

CFO
Werner Kapp

CEO

Balance Sheet

Forecast net debt (ZARm)

552.5

Forecast gearing ratio (%)

13

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	12.2	21.8	75.6
Relative	12.1	13.1	64.6
52 week high/low	ZAR14.2/ZAR7.4

Financials

Altron’s FY24 results confirmed good progress with its strategic plan, with headline EPS from continuing operations of ZAR1.16 up 36% y-o-y and well ahead of our ZAR1.00 forecast. Year-end net debt was significantly lower than expected due to tight control of working capital. The bulk of restructuring is now complete and has already boosted operating margins from 4.9% in FY21 to 9.0% in FY24. Altron is now positioned to drive revenue and profit growth through a combination of innovation, cross-selling and ongoing operational improvements.

Y/E Feb	Revenue (ZARm)	EBITDA (ZARm)	PBT (ZARm)	EPS (fd) (c)	P/E (x)	P/CF (x)
2023A	8445.0	1251.0	482.0	88.12	16.0	15.4
2024A	8250.0	1502.0	634.0	114.66	12.3	25.4
2025E	8403.6	1710.6	724.8	130.83	10.8	8.5
2026E	9075.9	1971.9	870.7	157.36	8.9	6.5

Research

thematic

TMT

07.11.23

MediaWatch – Still waiting…

thematic

TMT

28.07.23

MediaWatch – Targeting the opportunities

thematic

TMT

25.04.23

MediaWatch – Vision On

Digital Marketing and Internet Media Technology Platform

thematic

TMT

31.01.23

MediaWatch – Screening well

thematic

Consumer

05.10.22

IPO apocalypse

thematic

TMT

10.08.22

ESG, moving beyond the box tick

thematic

TMT

11.05.22

Direct tech investors

thematic

Consumer

24.03.22

Circular economy business models

thematic

TMT

29.09.21

Quantum dots – all the colours of the rainbow

thematic

TMT

09.09.21

Micro-LEDs – small is beautiful

thematic

TMT

16.08.20

Semiconductor winners – European companies with strong positions

thematic

TMT

24.06.20

The small satellite market – Small is beautiful

thematic

TMT

08.04.20

European video games: A safe haven in troubled times

thematic

TMT

27.02.20

Blockchain adoption: Implications for the financial services sector

thematic

Consumer

14.08.19

Illuminator: August Update

thematic

TMT

05.08.19

European video games

thematic

TMT

10.07.19

Diversification and scale for online success

thematic

TMT

08.05.19

5G – Strategic importance, but lacking a near-term commercial driver

thematic

TMT

26.02.19

UK video games – Heterogeneous not homogeneous

thematic

TMT

24.02.17

Mobile ecosystems

thematic

TMT

08.02.17

Mobile ecosystems

thematic

TMT

13.10.15

Mobile ecosystems

thematic

TMT

23.03.15

NZ – Edison talks tech

thematic

TMT

23.03.15

AUS – Edison talks tech

thematic

TMT

18.03.15

Mobile ecosystems

thematic

Consumer

11.11.14

Deutsche Börse Eigenkapitalforum 2014 Research Guide

thematic

TMT

15.10.14

Mobile ecosystems

thematic

Energy & Resources

04.03.14

ASX Spotlight Conference – London, 6 March 2014

thematic

Energy & Resources

01.03.13

ASX Small to Mid Caps Conference – London, 7 March 2013

thematic

TMT

24.09.10

The third pillar

thematic

TMT

10.09.10

The real disruptor

thematic

TMT

27.08.10

Merger mania is back